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TMI Blog2013 (9) TMI 1005X X X X Extracts X X X X X X X X Extracts X X X X ..... e been straightened, parallelized and separated from short fibres by combing or made directly from the ‘Tow’. Therefore, Top is also a form of fibre and hence, waste arising while converting Tow into Top, is a waste arising in the process of manufacture of fibre and, therefore, the provisions of Note 3 of Chapter 55 is satisfied. - The process of conversion of Tow into Top covers waste arising during manufacture of staple fibres - Goods are covered under CETH 5503.19 - Decided against assessee. - E/3352/2004 - Final Order No. A/851/2013-WZB/C-II(EB) - Dated:- 6-9-2013 - Shri P.R. Chandrasekharan, Member (T) and Anil Choudhary, Member (J) Shri Prasad Paranjape, Advocate Ms. Archana Jha, C.A., for the Appellant. Dr. B.S. Meena, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... facture of man-made staple fibres by undertaking the process of polymerisation, it cannot be said that the waste generated in the process of conversion of tow into tops is waste classifiable under CETH 5503.19 as waste (including noils, waste yarn and garnetted stock) of man-made fibres. Therefore, it is his plea that for the period prior to 16-3-1995, the date on which the said Chapter Note 3 was deleted, the soft waste which arose in the factory of the appellant is not excisable. He also relies on the decision of the Tribunal in the case of Rajasthan Textile Mills v. Collector of Central Excise, Jaipur - 1999 (105) E.L.T. 317 (Tri.) and Mohan Woollen Mills Ltd. v. Commissioner of Central Excise, Bangalore-III - 2003 (158) E.L.T. 377 (Tri. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al 1 2 3 4 5 55.03 Waste (including noils, waste yarn and garnetted stock) of man-made fibres - Of synthetic staple fibre and tow : 5503.11 -- Of high density polyethylene Nil 5503.12 -- Of polypropylene ₹ 11 per kg or 60% whichever is less. 5503.19 -- Other ₹ 11 per kg or 60% whichever is less. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n authority on textiles, states that Tow and Top are nothing but fibres. The said dictionary describes Tow as groups of continuous fibres which are generally processed on Tow conversion machinery into Tops, Slivers or Yarn. The said dictionary also describes Top as a bunch of fibre which have been straightened, parallelized and separated from short fibres by combing or made directly from the Tow . Therefore, Top is also a form of fibre and hence, waste arising while converting Tow into Top, is a waste arising in the process of manufacture of fibre and, therefore, the provisions of Note 3 of Chapter 55 is satisfied. 4.3 The appellant s contention that since they are not manufacturing man-made fibre in the factory, therefore, as p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... obtained as waste from the carding, combing and other processes preparatory to the spinning of staple fibres. However, waste fibres which are carded, combed or otherwise processed for spinning of yarn are not covered as wastes but they are treated as staple fibres carded or combed or otherwise processed for spinning. A plain reading of the clarification does not support the case of the appellant at all. The process of conversion of Tow into Top covers waste arising during manufacture of staple fibres. Thus, the clarification, on the other hand, supports the contention of the Revenue that it is covered under CETH 5503.19. 5. Since in the present case, the demand has been raised within the normal period, the question of time-bar does not ..... X X X X Extracts X X X X X X X X Extracts X X X X
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